Show SOUTHERN PACIFIC will WIL OF BE prosecuted FOR REBATING government will institute suit the existence of extensive system of preferential rates being alleged washington prosecutions are to bo be instituted by the government against the southern pacific company and against certain officials ot of that railway organization on allegation that they paid rebates to shippers information which Is to be a basis for these prosecutions was vas obtained by franklin K lane iane of tho the interstate commerce commission last autumn in the course of an extensive inquiry made by him into the affairs of the southern pacific company dy by direction of the interstate commerce commission commissioner lane visited the pacific coast and for several weeks conducted his inquiries into the alleged charges of rebating which had reached tho the commission commissioner lanes report of his in vesti gatlon including a transcript ot the testimony taken by him in a formal hearing as an interstate commerce commissioner was made public on saturday the report has been approved by the commission and a transcript of the report and of the evl evi lance dence adduced at the hearing has been transmitted to the department of justice for such prosecutions under the he law as may be warranted |